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Bill

HB 1190

Appointment of receiver for waterworks; public waterworks.

2026 Regular Session Introduced by Phil Scott

Allows courts to appoint receivers to manage failing public water systems in Virginia, enabling state intervention in local utility operations during crises.

Fiscal Impact Statement from Department of Planning and Budget (HB1190)
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Bill Summary · HB 1190

Legislative bill overview

HB 1190 establishes procedures for appointing a receiver to manage failing or dysfunctional public waterworks systems in Virginia. The bill allows courts or designated authorities to intervene in water utility operations when systems cannot maintain adequate service or financial viability, potentially transferring management control to a court-appointed receiver.

Why is this important

Water infrastructure failures directly threaten public health, property values, and economic development. This mechanism provides a legal pathway to rescue chronically mismanaged water systems before complete collapse, though it represents significant intervention in local utility governance and may affect ratepayers through operational changes or increased costs.

Potential points of contention

  • Local control vs. state intervention: Appointing receivers overrides local government authority over utilities, raising questions about municipal autonomy and regional power dynamics
  • Cost allocation: Unclear whether receivership costs, operational improvements, and rate adjustments fall on ratepayers, municipalities, or the state—potentially burdening vulnerable communities
  • Criteria for intervention: The bill's standards for determining when a system is "failing" enough to warrant receivership may be subjective or disputed between stakeholders

Compiled from official sources — confirm details with the bill’s official record.

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